Re: Bankruptcy FAQs

Hi everyone. First, I'd like to say this forum has been so helpful to me and has made me feel less ashamed/depressed about considering filing for bankruptcy. So, thank you!!

I am 99% sure I'm going to file for Ch.7. I have finally come to terms (after many sleepless nights) that I just can't keep struggling paycheck to paycheck paying, payin, paying and getting nowhere. I've paid for years above minimum, strugged on the phone with cc's to lower my interest rates, etc and am getting absolutely nowhere. I'm drowning and finally throwing in the towel and for some reason I'm suprised to find I find some relief. ..I'm in the process of finding the right attorney and have 2 questions:

1. I recently purchased a new car..any info on what happens when I file and what happens w/ a car loan?? Will the loan co. raise my interest rate? Re-possess my car? I have no idea, sorry if I sound ignorant!

2. What's a ballpark rate people have paid for a bankruptcy attorney? I just don't want to get taken advantage of. Am willing to pay for a good attorney but scared too.

Re: Bankruptcy FAQs

What do you do when you need to file bankruptcy but don't have any money for an attorney? I am just barely paying (2 wks late at all times) my mortgage and have stopped paying all unsecured debt in order to do that. That leaves me with about $150 for the whole month for food, gas, OTC meds, necessities etc. What does one do in that case?

Also, I have a pending lawsuit against someone who owes me quite a bit of money but has made no effort to pay me back in 1 1/2 years (it was a 3 month loan). This will take years to get back from him. What happens if I file bankruptcy now because I am out of money and then maybe a year later I collect from him?

Re: Bankruptcy FAQs

As a fellow adoptive parent I can totally relate. I filesd chapter seven with two mortgages and was able to keep my home, and car and just get rid of my cc debt. My employer never knew. I say start make fresh and take care of that Baby!

I filed CH 7 in May 2006. In June 2007 I went to BoA's pre-approvel site, filled in all the info and got approved for a "Gold" Visa with a $2,000 CL. Was BoA included in your BK? They were not in mine & that might be the issue.

FICO scores on November 17, 2014 (prior to applying for and being approved my mortgage)

EX=738EQ=735TU=754

FICO scores on March 4, 2015 after being approved for mortgage and buying the home, the mortgage isn't yet reporting.EX- 689 EQ- 739 TU- 739

Re: Bankruptcy FAQs

I went to a firm, Pacific Law Firm to be exact, that have attorney's yes, but use paralegals to do their work. You do not see the attorney until the last day. You're questioned about your finances from the time you walk in to the time you walk out. I would say this is a mill so to speak. The paralegal is rude and treats you like a child. Has no time for you, will not explain things as to what exactly she is looking for. You almost have to guess and it adds to the stress. You see an attorney at the very last, providing he isn't at his golf game. He once again asks financial questions and explains the procedure. In my case it was a bit different. I only had Bank of America loans. I was on time and not late. So they had to make me late in order to do this bankruptcy. All creditors I had paid off or not sunk along with BOA.

Day of creditor meeting: I watched the procedure saw the person who was the so call "Trustee" he stated he was the FBI agent. Now I watched others with their attorney's walk through this with no problem. They're attorney's or representation spoke for them. Answered a few questions and that was all. When it came to my turn, I was ripped into for having the loans, ripped into for charging and then paying bills ( prior to my decision to go Bankrupted) I was told I had a shopping spree and then decided one day to do this. ( which was not true) I had no support ( meaning my husband was not there, he had to work that day and he was not in the bankruptcy) This Trustee so to speak ripped me apart as if I had committed a crime of sort. When he got through with me, I was so sick to my stomach. I looked at my representation, who was more interested in his blackberry than answering this FBI agent. I was very angry and upset. When he went to shake my hand, I flat out want to knock him on his butt. I ended up getting sick. This wasn't suppose to be this way. I paid $2,500 for what? To push some papers and be belittled by flunkie paralegals that need lessons in etiquette. Plus another $300 bucks to get this into court and never once saw my "own" attorney, only his friend.

I realize bankruptcy isn't a game. It's serious and beleive me a choice I did not want. I tried everything from trying to talk with BOA to going to debt settlement companies. It wasn't my fault that the economy took a nose dive, or I loss my job and my income was decreased. It wasn't my fault I had to choose between paying the outrageous $1,200 a month loan payments or pay my rent to live. It was a hard decision and one I had no choice.

At 62 the stress of losing my nursing job, the treatment I received from these so call ambulance chaser attorneys/ paralegals, that look more like the Grisham book "THE FIRM" rather than a business of caring for their clients.

My question is this...why what this FBI agent in the meeting of creditors and siding in with the BOA instead of listening to what "I" had to say? Or was this how it was suppose to work?

Re: Bankruptcy FAQs

...I was on time and not late. So they had to make me late in order to do this bankruptcy...

No, they didn't! Technically, I suppose, a person entirely able to pay his single debt COULD file bankruptcy (though it surely wouldn't be smart). It's up to YOU, not your attorney! There is no law/rule that says a filer MUST be behind on his payments in order to file. I wasn't -- in fact, my accounts all had been closed while current for almost a year -- but my credit-counseling, debt-management plan (which was formulated before I became delinquent to ANY creditor) obviously was no longer sustainable. I paid my payment one month (which was distributed to creditors on time), and filed before the next payment was due so I didn't have to pay it. My filing date was PRIOR TO my next payment-due date -- so I was then current (though I hadn't had any discretionary money for several months)! And, it benefited me post-discharge: because I had no 'lates' reporting, the BK public record was my only FICO ding, and so my scores never tanked. I closed a mortgage just 55 days post-bankruptcy.

Re: Bankruptcy FAQs

No, they didn't! Technically, I suppose, a person entirely able to pay his single debt COULD file bankruptcy (though it surely wouldn't be smart). It's up to YOU, not your attorney!

No what I meant was that I wasn't behind on payments and yes it was my decision of course to go do bankruptcy. It was the attorney who told me that I had to wait a month so the debt could be deliquent one payment as they processed the case.

I had gone to a debt managment plan "before" I went to an the attorney. The debt management didn't seem to work for me. It was the same problem. I had no idea of what my income would be to state I could give them x amount of dollars. I didn't know where I stood for almost 3 months. Hope I made this clear.

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

† Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair
organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or
assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.